The Fed's Chairman Bernanke stated that the beginning of monetary stimulus tapering will be highly influenced by economic data. He said that the FOMC will respond to the data, meaning that if the economy will struggle they could remain the stimulus measures accommodative. The Treasury 10-year yield dropped 0.04% to 2.49% at 5 p.m. New York time.
The Canadian currency dropped as Stephen Poloz, the new Governor of the Bank of Canada, stated that country's economy is still struggling. The Loonie fell versus almost all of its most-traded peers as the benchmark interest rate remained unchanged. The Canadian Dollar slid 0.4% to $C1.0405 per U.S. Dollar as of 5 p.m. Toronto time.
The Japanese currency slipped for a second straight day versus the U.S. Dollar on speculation that G-20 officials could endorse tapering the BoJ's monetary stimulus at the meeting this week and that would impact the nation's inflation. The Yen depreciated 0.6% to 100.18 per Dollar at 7:55 a.m. in London after falling 0.5% on Wednesday, while it appreciated 0.4% to
The U.S. Dollar climbed versus the Euro, as the Federal Reserve Chairman Bernanke has given hint on the Fed's plans tapering asset purchases. The greenback advanced 0.53% to $1.3092 versus the common currency at 2:47 p.m. GMT. Versus the Japanese Yen, the currency gained 0.68% to 99.76. Against the Kiwi, the Dollar rose 0.11% to 0.7882.
The Canada's currency decreased as Bank of Canada Governor Stephen Poloz revealed the economy is still significantly behind its potential and inflation remains low, limiting the possibility of interest rate increase. The Loonie declined 0.3% to C$1.0403 per Greenback as of 10:11 a.m. Toronto Time. The Bank of Canada increased this year's growth forecast from 1.5% in April to 1.8%.
The U.K. Pound advanced versus the greenback and the 17-nation currency after the Bank of England released its minutes of most recent meeting. The minutes showed that officials voted against expansion of monetary stimulus progamme. The currency gained 0.6% to $1.5248 as of 2:29 p.m. in London after decreasing to $1.5079 previously.
U.S. equities increased after Fed Chairman Bernanke commented that bond purchasing has not been on a preset plan. The S&P gauge advanced 0.2% to 1,680.36 as of 9:30 a.m. New York time. Ben S. Bernanke revealed that the Federal Reserve is willing to keep flexibility in its monetary policy and will respond to economic data.
Housing starts in the U.S. unexpectedly decreased in June to the lowest since August 2012. Number of construction starts dropped 9.9%, a larger decline than any expert expected. The decline in activity in June came even as home builders sentiment index increased from 51 to 57 in July, a seven-year high. The rate for a 30-year mortgage advanced 4.51%.
Ben Bernanke, the Chairman of the Federal reserve, revealed today the Fed still has intention to begin reducing its QE programme later this year, yet he left open the possibility of alternating the plan if economic projections changed. The Chairman said economic recovery is improving steadily due to stronger housing sector, and he pointed out that risks associated with the
The British currency rose versus the greenback and the Eurozone's currency, erasing earlier retreat, after England's central bank minutes from previous meeting were released. The Sterling appreciated 0.3% to $1.5204 as of 11:18 a.m. in London after sliding to $1.5079 earlier. At the same time, it strengthened 0.4% to 86.47 pence per Euro after reaching 87.11 pence, the lowest since
EU stocks advanced, erasing previous losses, before Fed Chairman Ben Bernake's speech to the Congress later this day which may provide investors with information about the Fed's stimulus plans. Euro Stoxx climbed 0.38% to 2,675.61. Germany DAX increased 0.27% to 8,223.38 and the French CAC 40 added 0.40% to 3,866.39.
German 10-year government bunds contracted as the Germany auctioned 3.19 billion euros of the securities. German 10-year note yield advanced three basis points to 1.58% and the 1.5% security maturing in May 2023 decreased 0.255 to 99.29. Two-year bund yields jumped one basis point to 0.1%. Germany auctioned bonds at an average 1.57% yield.
Japan's stocks inched up, with the Topix index rising for the third day, as the Japanese Yen depreciated versus the U.S. Dollar and investors expected speech by the Federal Reserve Chairman Ben Bernanke. The Topix advanced 0.2% to 1,213.24 and the Nikkei 225 Stock Average gained 0.1% to 14,615.04. The yen slipped 0.3% to 99.37 against the greenback.
U.K. shares dropped, reversing an earlier advance, after England's central bank minutes indicated that Mark Carney united lawmakers to vote against further bond purchases and to remain the benchmark interest rate at 0.5%. The FTSE 100 Index slipped 0.2% to 6,542.1 as of 9:46 a.m. London time after advancing 0.5% earlier, while the FTSE All-Share Index also slid 0.2%.
Gold futures declined from the highest delivery in three weeks in the last session, as investors await a key speech from the Federal Reserve chief Ben Bernanke. The August gold contract decreased $1.30 to $1,289.10 per ounce, following a jump of $6.90 yesterday. Silver for September delivery declined 0.3% to $19.88 per ounce and copper for September settlement gained to
European shares declined, prolonging their biggest fall in more than seven days, on BoE minutes that showed the England's central bank officials voted in favor of holding bond purchases in the future. The Stoxx Europe 600 Index declined 0.5% to 293.95 as of 10:15 a.m. London time, reversing a gain of 0.3%. The equity-benchmark slid from its near six-week high;
Spain's 10-year securities retreated, with the yield on the country's bonds expiring in October 2023 advancing 0.04 percentage point, or four basis points, to 4.72% in London at 9:33 a.m., and Italian 10-year bond yield climbed two basis points to 4.48%. Germany's 10-year security yields inched up two basis points to 1.57%.
U.K. June's jobless claims dropped the most in three years, adding to evidence that nation's economy is improving. Unemployment claims declined 21,200 to 1.48 million compared to May, making it the biggest fall since June 2010, according to London based Office for National Statistics. The number of people out of work in dropped 57,000 reaching 2.51 million in previous three
The Pound advanced as the Bank of England released it minutes from the July 4 meeting with increased jobs report, as investors await the speech from the Federal Reserve chief Ben Bernanke. The Bank of England officials voted to maintain bond purchases unchanged at £375 billion this month. The Sterling added 0.45% to $1.5234 versus the greenback and jumped 0.50%
The Japanese currency declined versus its major counterparts, as investors were expecting the speech from the Federal Reserve Chairman Ben Bernanke on quantitative easing, which may provide signals on when the Fed plans to begin reducing its bond-buying programme. The Yen retreated 0.25% to 99.33 versus the greenback and dropped 0.18% to 130.54 versus the 17-nation currency.
The Canadian the currency snapped two days of declines versus U.S. Dollar on bets the Fed's Chairman Bernanke could state that they are in no rush to wind down monetary stimulus programme. Canada's currency strengthened 0.6% to C$1.0369 per U.S. Dollar as of 5 p.m. Toronto time and one Canadian Dollar buys 94.44 U.S. cents.
The Aussie pared its biggest two straight day climb in almost two years on bets that the Australia's central bank might cut interest rates to the lowest level ever next month. The Australian Dollar dropped 0.3% to 92.29 U.S. cents at 3:11 p.m. Sydney time after it rose 2.3% two past days, while the Aussie was at 91.68 Yen. The
The greenback advanced versus most of its major peers before the Fed's Bernanke testimony today. The U.S. Dollar gained 0.3% to 99.37 Yen at 7:06 a.m. London time after falling 0.8% on Tuesday, while it climbed 0.2% to $1.3136 per Euro. Eurozone's currency added 0.1% to 130.52 Yen and the Sterling slipped 0.1% to 86.94 pence per Euro after reaching
Poland has the weakest economics growth since the 90s. Policymakers revealed plans to loosen the deficit by $4.95 billion (16 billion Zloty) to stop the stagnation. The Zloty rose 1% to 4.2467 versus the Euro as of 4:54 p.m. in Warsaw, reaching a four-week high. The returns on 10-year bond increased one basis point to 3.93%.